Every family is paying about $30k annually for healthcare they barely use, and that typically comes with a high deductible and out of pocket costs.
The median healthcare spend is $500 annually.
Now imagine an alternate version. Every American has a tax exempt HSA, but to participate, you must purchase at least a catastrophic insurance plan. If we allowed pre-ACA plans, we are looking at $6000-12000 per year. For the poor, instead of Medicaid or an ACA subsidy, the government just funds their HSA for them.
Now every family is putting $15k a year into an HSA. Most people would barely touch that. Maybe use some to pay for a DPC and the occasional lab or prescription. But by retirement, everyone would have $2-5 million saved up. That could pay for all lifetime medical expenses for 95% of Americans.
The only people who have to deal with insurance companies are those with catastrophic high cost events (trauma, cancer, etc). The only role government has is as a reinsurance to keep premiums low and help people with pre existing conditions get plans. Or for the truly destitute who burn through their HSA and cannot care for themselves (universal backstop coverage).
This would provide truly universal coverage, give money back to patients, simplify healthcare, and make every American richer.
this always gives me such sticker shock - the average annual health insurance premium for families is nearly $27K now!
I updated the numbers for the upcoming Healthcare 101 course (starts July!) - one of the points I try to get across is that most people don't realize how much of their paycheck is getting eaten by healthcare. It feels indirect because
- it happens in the form of not getting wage increases
- it's deducted from your paycheck
- it happens in the form of Medicare taxes too
- Deductibles are only incurred when you actually get care, so you only "feel" that when you actually see the doctor but it is coming out of your pocket
Pretty crazy!